Kerala VAT- HC set-aside Order against legal heirs without any notice to them

Sreeram. B. Vs Sales Tax Officer (Kerala High Court)

A perusal of Ext.P6 order of the 1^st respondent does not reveal that the order was issued after affording any opportunity of hearing to the legal heirs of late Bhagavathirajan. The registration of the dealer was cancelled from 12.05.2022 on account of the death of late Bhagavathirajan. Therefore, I am of the opinion that Ext.P6 could have been issued only with notice to the legal heirs of late Bhagavathirajan. Since it is seen that Ext.P6 has been issued without notice to the legal heirs of late Bhagavathirajan, I find that Ext.P6 is issued in violation of principles of natural justice. Therefore, Ext.P6 is quashed. The 1^st respondent shall pass fresh orders in terms of Ext.P3 appellate order after affording an opportunity of hearing to the writ petitioner. The writ petitioner shall mark appearance before the 1^st respondent at 11.00AM on 10.01.2023 either in person or through authorized representative. Assessment shall thereafter be completed after affording to the petitioner an opportunity of hearing and also an opportunity to produce such documents as he may wish to rely upon. It is made clear no further notice need to be issued to any other legal heirs of late Bhagavathirajan before concluding the proceedings as directed in Ext.P3 appellate order. Any proceedings for recovery of amounts due under Ext.P2 order of assessment shall be kept in abeyance till fresh orders are passed by the 1^st respondent as directed above. If the petitioner requires any documents for the purpose of contesting the case before the 1^st respondent, it will be open to the petitioner to seek copies of those documents from the 1^st respondent.

FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT

The petitioner is one of the the legal heirs of late Bhagavathirajan.T, who was a dealer registered under the provisions of the Kerala Value Added Tax Act, 2003. He was engaged in business as a sole proprietor. Following an audit conducted in the business premises of late Bhagavathirajan, an assessment was completed for the period from April 2014 to August 2014 vide order dated 15.12.2014. The order is on record as Ext.P2. Late Bhagavathirajan challenged Ext.P2 order before the first appellate authority, who by Ext.P3 order had remanded the matter for fresh consideration of the assessing authority. Ext.P3 order was issued on 23.02.2017.

2. Late Bhagavathirajan expired on 31.05.2021. It is the grievance of the petitioner that the assessing authority had issued Ext.P6 modified order of assessment giving effect to Ext.P3 order of the first appellate authority without issuing any notice to the legal heirs of late Bhagavathirajan. In the meanwhile, Revenue Recovery proceedings were also initiated to recover amounts due under the original order of assessment (Ext.P2).

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